Jobless agency needs leadership

South Carolina's agency that deals with unemployment claims and helps workers find new jobs finds itself looking for a new boss. Abraham Turner, a retired Army general who assumed the helm of the newly created agency in September 2011, resigned on Friday for "personal reasons."

Turner, who was appointed by Gov. Nikki Haley in May 2011 but didn't take the job until he retired from the Army, has come under criticism in recent weeks for a number of matters ranging from stories about improper unemployment payments remaining high even though they have fallen, pay raises for some staffers, the closing of 17 unemployment centers in rural counties, and training sessions that took place at the beach.

South Carolina needs a well-managed employment agency for a number of reasons, and at the top of the list is that this state more than most knows how much trouble it can get in when this type of agency is mismanaged. Also, this agency helps process the unemployment claims of many workers who find themselves out of a job through no fault of their own, and those workers deserve timely assistance during a tough time in their lives. Businesses also deserve fair treatment by this agency that can have a powerful impact on the bottom line. And finally, this state as a whole benefits when people needing jobs are quickly connected with companies that have openings.

Criticism targeted at Turner certainly was mild compared to that leveled at the agency several years ago when the economy collapsed and South Carolina suddenly had one of the highest unemployment rates in the country. Years of neglect and poor policy helped the agency that once had a healthy surplus suddenly start showing a crushing debt. South Carolina had to borrow about $1 billion from the federal government in order to pay unemployment claims.

The legislative reform package passed in early 2010 wasn't perfect but it went a long way toward correcting serious deficiencies at the old Employment Security Commission, as the agency once was known. The agency was made part of the governor's Cabinet but the governor, then Mark Sanford, wasn't given total authority in selecting the person to head the agency. A panel reviewed the candidates for executive director, and then the governor made the selection that had to be confirmed by the Senate.

Reforms were significant, however. The agency was given a new name, a new boss and a new mission. The Department of Employment and Workforce shifted its focus from primarily handing out unemployment checks to connecting workers with open jobs in our state. That was an important refocusing because it made it clear that the state could best help unemployed workers by getting them into a new job.

It also was revealed that the old agency had been handing out unemployment checks to employees fired for gross misconduct. Some degree of error is inevitable but what had been taking place in South Carolina made a mockery of the process. This area was cleaned up considerably, too.

Some of the criticism leveled at Turner has been unfair in that it failed to take into account that the agency is processing fewer claims because the economy is improving in South Carolina and across the country. South Carolina's unemployment rate has dropped from a high of 12 percent in late 2009 to 8.4 percent in December 2012.

With federal funds for administrative services shrinking from $44 million in fiscal year 2010 to $29.8 million, and with unemployment claims dropping from 67,000 a week in 2011 to about 38,000 a week currently, Turner and DEW made some decisions that were not universally popular. The agency has had its own layoffs and it decided to close 17 unemployment centers in rural counties, according to a Greenville News story by Tim Smith. Those rural counties show some of the highest unemployment rates, and transportation to other counties can be difficult.

Turner's announcement that he would resign effective March 1 got a strong response from House Democratic Leader Rep. Todd Rutherford. In a statement Friday afternoon Rutherford called DEW "an absolute embarrassment." Furthermore, he said, "In the last two weeks the governor's agency has made news because of crippling layoffs, massive pay raises, lavish taxpayer-funded beach retreats, the closing of 17 unemployment centers in rural counties, and now the resignation of the executive director. Gov. Haley must regain control of her agency before it is too late. Millions of South Carolinians depend on this agency to be functional and effective. As it stands today, it is the opposite."

There is no reason to believe that Gov. Haley has lost control of this agency, but it is disturbing to find it back in the news for the wrong reasons. The governor should focus on correcting the lingering problems, and even the perception of lingering problems, at an agency that once seemed out of control. She can start by making sure her next appointment has the experience, training and temperament needed for a difficult job.